US company Global Partners LP (NYSE:GLP) said last week it would use its oil train terminal in Oregon to transload ethanol during the current difficult period for the crude market.
The company will be cleaning tanks and associated infrastructure through some time in the third quarter of 2016.
Global Partners has also cut 70 jobs, representing 8% of its headcount excluding employees at its convenience stores. Employees have been laid off at its transload facilities in Oregon and North Dakota, as well as at its corporate offices.
The firm further said that in light of the severe headwinds in the crude oil market it had decided to reduce its quarterly distribution for the first time since its initial public offering in 2005. The pay-out was slashed by 33.7% to USD 0.4625 per unit.
“We continue to be negatively impacted by fixed costs associated with our crude oil business, including railcar leases,” noted president and chief executive Eric Slifka.
The terminal at Oregon’s Port of St Helens includes an ethanol manufacturing facility. The firm has been carrying out an expansion there, including a dock modernization to enable the handling of Panamax-size vessels.
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